(Reference Translation)

May 12, 2022

Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
<under Japanese GAAP>
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

MIKUNI CORPORATION
Prime Market of the Tokyo Stock Exchange
7247
https://www.mikuni.co.jp/
Hisataka Ikuta, President, CEO & COO
Hisashi Shibata, General Manager Accounting Dept. Corporate Division
TEL: +81-3-6895-0038

Scheduled date of Ordinary General Meeting of Shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file the Annual Securities Report:
Preparation of supplementary material on financial results:
Holding of financial results presentation meeting:June 28, 2022
June 29, 2022
June 28, 2022
Yes
Yes (for institutional investors and analysts)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the fiscal year ended March 31, 2022
(from April 1, 2021 to March 31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes. Figures in parentheses are negative figures.)
Net sales

Operating income

Fiscal year ended

Millions of yen%

March 31, 2022

80,789(7.1)

3,318 483.0

March 31, 2021

86,962 (21.3)

569 (76.4)

Note: Comprehensive income

Millions of yen%

Fiscal year ended March 31, 2022:
Fiscal year ended March 31, 2021:

Net income attributable toowners of parent

Ordinary income
Millions of yen% Millions of yen

3,137 425.5
597(67.9)

3,465 million yen
1,954 million yen

%

1,318

–

(125)

–

[77.3 %][– %]Ratio of ordinary
Ratio of operating
income to total
income to net sales
assetsBasic earnings
per share

Diluted earnings
per share

Return on equity

Fiscal year ended

yen

yen

%

March 31, 2022

39.31

–

4.5

3.3

4.1

March 31, 2021

(3.73)

–

(0.5)

0.6

0.7

%

%

Reference: Share of income (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2022: (74) million yen
Fiscal year ended March 31, 2021: (264) million yen
Note:
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and each figure for the fiscal year
ended March 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

yen

March 31, 2022

96,917

31,91832.1

925.67

March 31, 2021

93,891

28,39629.4

822.12

Reference: Equity
Note:

As of March 31, 2022:
31,064 million yen
As of March 31, 2021:
27,560 million yen
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and each figure as of March 31,
2022 is the figure after applying the accounting standard and relevant ASBJ regulations.

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodFiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

5,078

(2,371)(2,474)

5,060

March 31, 2021

318

(2,876)

2,217

4,249

2.

Dividends
Annual dividends

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)3.

Total dividends(Total)Dividend
payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)yen

yen Millions of yen

%

%

–

5.00

5.00

170

–

0.6

5.00

–

5.00

10.00

340

25.4

1.1

5.00

–

5.00

10.00

First
quarterend

Secondquarterend

Third
quarterend

Fiscalyearend

yen

yen

yen

–

–

–
–

Total

24.0

Consolidated earnings forecasts for the fiscal year ending March 31, 2023
(from April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes. Figures in parentheses are negative figures.)
Net sales

Six months ending
September 30, 2022
Fiscal year ending
March 31, 2023

Operating income

Ordinary income

Net income
attributable toowners of parent

Basic earnings
per share

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

yen

45,400

14.8

1,200

(36.9)

1,000(40.7)

250(66.6)

7.44

95,000

17.6

3,500

5.5

3,100

(1.2)

1,400

6.2

41.71

* Notes(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries
resulting in changes in the scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None
(Note) For details, please refer to “(5) Notes to consolidated financial statements (Changes in accounting policies)” of “4.
Consolidated financial statements and significant notes thereto” of the attached material.

(3) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022
As of March 31, 2021b.

Number of treasury shares at the end of the period
As of March 31, 2022
As of March 31, 2021

c.

34,049,423 shares
34,049,423 shares

490,219 shares
525,429 shares

Average number of shares during the period
Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2021

33,549,007 shares
33,586,684 shares(Note) The Company’s shares held by the “Management Board Incentive Plan (BIP) Trust” and “Employee Stock
Ownership Plan (ESOP) Trust” are included in the number of treasury shares at the end of the period (454,380
shares as of March 31, 2022 and 489,880 shares as of March 31, 2021).
In addition, the Company’s shares held by the “Management Board Incentive Plan (BIP) Trust” and “Employee
Stock Ownership Plan (ESOP) Trust” are included in treasury shares, which are deducted in calculating the average
number of shares during the period. (464,749 shares in the fiscal year ended March 31, 2022 and 334,987 shares in
the fiscal year ended March 31, 2021)

(Reference)

Summary of non-consolidated financial results

Non-consolidated financial results for the fiscal year ended March 31, 2022
(from April 1, 2021 to March 31, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes. Figures in parentheses are negative figures.)
Net sales

Operating income

Ordinary income

Net income

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2022

38,893(28.7)(1,072)

–

1,389

–

1,238

–

March 31, 2021

54,535(27.7)(2,449)

–

(530)

–

(939)

–

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

yen

yen

March 31, 2022

36.93

–

March 31, 2021

(27.96)–(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

yen

March 31, 2022

66,231

19,37529.3

577.36

March 31, 2021

67,855

18,54427.3

553.18Reference:

EquityAs of March 31, 2022:
As of March 31, 2021:

19,375 million yen
18,544 million yen* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Disclaimer regarding forward-looking statements
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company at the time of the release of these materials. Actual results
may differ from the forecasts due to various factors.

[Attached Material]
Index

1. Overview of operating results and others ............................................................................................... 2(1) Overview of operating results for the fiscal year ............................................................................. 2(2) Overview of financial position for the fiscal year............................................................................ 5(3) Basic policy for distributing incomes, and dividends for the fiscal year under review and next fiscal
year................................................................................................................................................... 6
2. Status of the corporate group .................................................................................................................. 7
3. Basic concept regarding selection of accounting standards ................................................................... 7
4. Consolidated financial statements and significant notes thereto ............................................................ 8(1) Consolidated balance sheet .............................................................................................................. 8(2) Consolidated statement of income and consolidated statement of comprehensive income ........... 10(3) Consolidated statement of changes in equity ................................................................................. 12(4) Consolidated statement of cash flows ............................................................................................ 14(5) Notes to consolidated financial statements .................................................................................... 16(Notes on premise of going concern) ............................................................................................. 16(Changes in accounting policies) ................................................................................................... 16(Change in presentation) ................................................................................................................ 17(Segment information, etc.) ........................................................................................................... 18(Per share information) .................................................................................................................. 20(Significant subsequent events) ..................................................................................................... 20

-1-

1.

Overview of operating results and others(1) Overview of operating results for the fiscal year
In the current fiscal year (from April 1, 2021 to March 31, 2022), the Japanese economy showed signs ofrecovering from the effects of COVID-19. However, limitations on production activities were observed
amid the lengthening impact of shortages of semiconductors and other parts in automotive-sector supply
chains. Overseas, economic recovery in the United States was joined by moves toward recovery in theeconomies of India, Thailand and Indonesia, while the pace of economic recovery in China slowed.
In this business environment, sales increased 9.8% year-on-year in the Company’s mainstay Automobilerelated Products Business, but the Aircraft Component Import and Sales Business suffered a decline intrading volume and business results were impacted by the application of the “Accounting Standard for
Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter “the Accounting standard
for revenue recognition, etc.”). The Group’s net sales amounted to 80,789 million yen (down 7.1% yearon-year). Due to the significant increase in sales in the Automobile-related Products Business, operating
income amounted to 3,318 million yen (up from 569 million yen in the previous fiscal year). As a result,ordinary income amounted to 3,137 million yen (597 million in the previous fiscal year) and net income
attributable to owners of parent stood at 1,318 million yen (net loss attributable to owners of parent of
125 million yen in the previous fiscal year). As a result of the application of the accounting standard forrevenue recognition, etc., net sales in the current fiscal year were 21,611 million yen lower than theywould have been under the previous accounting standard, operating income was 125 million yen lower
and ordinary income was 108 million yen lower.
Operating results by segment are as follows.
(i)<Automobile-related Products Business>
Sales in this business, which centers on the manufacture and sale of fuel supply systems forautomobiles, motorcycles, and general purpose engines and engine-related functional components,
increased compared with the previous fiscal year. The impact of semiconductor and other parts
shortages lingered, causing some automakers to curtail their production activities. However, India
enjoyed strikingly positive growth, raising net sales in this market roughly to pre-pandemic levels.
Against this background, the Group continued efforts to expand sales and strove to improve
revenues, particularly by improving productive efficiency. Net sales in this business amounted to
66,245 million yen (up 9.8% year-on-year), while operating income surged to 3,567 million yen(compared with 772 million yen in the previous fiscal year). As a result of the application of theaccounting standard for revenue recognition, etc., net sales were 3,517 million yen lower than theywould have been under the previous accounting standard and operating income was 120 million yen
lower.

(ii) <Household Appliances Device Products Business>
Sales in this business, which centers on the manufacture and sale of control systems for gas
appliances and water appliances, increased from the previous fiscal year. The revision of productstrategies resulted in net sales in this business of 6,753 million yen (up 16.1% year-on-year).
However, difficulties in procuring raw materials and rising raw-material costs and logisticalexpenses had an impact. Operating loss widened to 491 million yen, from an operating loss of 221
million yen in the previous fiscal year. As a result of the application of the accounting standard forrevenue recognition, etc., operating loss was 5 million yen higher than it would have been under theprevious accounting standard.
(iii) <Aircraft Component Import and Sales Business>
Sales of aircraft components decreased from the previous fiscal year. Net sales in this businessamounted to 1,615 million yen (16,441 million in the previous fiscal year). As a result of theapplication of the accounting standard for revenue recognition, etc., net sales 18,093 million yen
lower than they would have been under the previous accounting standard. Operating income was
286 million yen (up 50.6% year-on-year), mainly as a result of contributions from new businessdespite the significant decline in demand for passenger aircraft.

-2-

(iv) <Turf-maintenance Equipment, etc. Sales Business>
Sales of the Turf-maintenance Equipment, etc. Sales Business increased from the previous fiscal
year. Customers’ capital investment recovered during the period, and the Group’s efforts focusing
on after-sales service began to bear fruit. Transfer of this business to a subsidiary in the previous
fiscal year was effective in enabling nimbler organizational management, while a change in thetiming of reflection of results in the consolidated accounts from a company split also had an impact.
Net sales in this business were 3,877 million yen (up 50.9% year-on-year).
In addition, operating loss narrowed from an operating loss of 169 million yen in the previous fiscal
year to 33 million yen with the progress of the review of product mix.
(v) <Other Businesses>
Sales in this segment, which handles the manufacture and sale of vehicle heaters, welfare and caredevices and other products, increased from the previous fiscal year. Net sales in Other Businesses
amounted to 2,297 million yen (up 28.4% year-on-year), buoyed by a favorable trend in welfare andcare devices. Operating loss was 10 million yen (operating loss of 2 million yen in the previous
fiscal year), impacted by difficulty in procuring raw materials.
[Comparison table of operating results by segment]
Fiscal year ended
March 31, 2021
Operating
Net sales
incomeFiscal year ended
March 31, 2022
Operating
Net sales
incomeChange innet sales
AmountRatio(Millions of yen)
Change inoperating income
Amount

Ratio

Automobile-related Products
60,345772
66,245
3,567
5,900
9.8%
2,794
361.6%
Business
Household Appliances Device
5,818
(221)
6,753
(491)
935
16.1%
(270)
–
Products BusinessAircraft Component Import
16,441
190
1,615
286
(14,825)(90.2)%
96
50.6%
and Sales Business
Turf-maintenance Equipment,
2,568
(169)
3,877
(33)
1,308
50.9%
136
–
etc. Sales Business
Other Businesses
1,788
(2)
2,297
(10)
508
28.4%
(7)
–
Total
86,962569
80,7893,318(6,172)(7.1)%
2,749
483.0%
Reference: exchange rate
1 USD = 106.76 yen
1 USD = 109.90 yen––(Notes) 1. The figures inside parentheses in the column presenting operating income indicate the amount of operating loss.
2. Amounts less than one million yen are discarded.
3. “–” indicates a negative change in the current fiscal year or the previous fiscal year or both.
4. Accounting procedures regarding revenue recognition are changed to apply the accounting standard for revenue
recognition, etc. from the beginning of the current fiscal year. The standard for calculation of income and loss foreach operating segment is changed in the same way.
Net sales and operating income for each segment in the current fiscal year under the previous accounting standard
are as follows.
Automobile-related Products Business: Net sales: 69,763 million yen, operating income: 3,688 million yen
Household Appliances Device Products Business: Net sales: 6,753 million yen, operating loss: 486 million yen
Aircraft Component Import and Sales Business: Net sales: 19,709 million yen, operating income: 286 million yen
Turf-maintenance Equipment, etc. Sales Business: Net sales: 3,877 million yen, operating loss: 33 million yen
Other Businesses: Net sales: 2,297 million yen, operating loss: 10 million yen
Total: Net sales: 102,400 million yen, operating income: 3,444 million yen-3-[Reference] Performance trends for each quarter from the fiscal year ended March 31, 2020 to fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2020
Automobile- Net sales
relatedOperating
Products
incomeBusiness
Household Net sales
Appliances
DeviceOperatingincomeProducts
Business
Aircraft
Net sales
Component
Import and Operating
incomeSales
Business
TurfNet sales
maintenance
Equipment, Operating
incomeetc. Sales
Business
Net sales

Other
Businesses Operating
Total

incomeNet sales
Operatingincome(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2021

First quarter

SecondquarterThird quarter

FourthquarterFirst quarter

SecondquarterThird quarter

FourthquarterFirst quarter

SecondquarterThird quarter

Fourthquarter

16,801

16,904

17,39919,094

10,977

12,751

17,59419,021

15,848

16,627

16,244

17,524

639

283

679

1,133

(323)

(946)

505

1,537

1,263

804

758

740

1,319

1,458

1,557

1,483

1,032

1,325

1,777

1,682

1,512

1,755

1,634

1,851

(166)

(118)

(23)

(37)

(144)

(120)

51

(7)

(75)

(89)

(111)

(215)

7,473

7,180

6,892

7,186

6,173

3,019

2,906

4,341

287

332

593

402

139

65

100

40

200

60

(46)

(24)

(22)

17

244

46

1,083

1,098

565

714

1,019

822

106

621

1,017

1,109

903

846

(18)

(58)

(133)

(175)

(8)

(92)

(2)

(65)

8

(0)

4

(45)

574
490
(38)
(30)
27,252 27,132
555
140

561
44
26,977688

658
84
29,137
1,045

412
(11)
19,615
(286)

368
(52)
18,285(1,151)458
15
22,843522

549
45
26,2161,484

516
919,183
1,183

548
(13)
20,373719

597
519,972
901

634
(12)
21,259514(Notes) 1. The figures inside parentheses in the row presenting operating income indicate the amount of operating loss.
2. Amounts less than one million yen are discarded.
3. Accounting procedures regarding revenue recognition are changed to apply the accounting standard for revenue
recognition, etc. from the beginning of the current fiscal year. The standard for calculating income and loss for each
operating segment is changed in the same way.

-4-

Future outlook
In view of the Russian invasion of Ukraine, the Group expects uncertainty about prospects for the global
economy to persist. In the Group’s mainstay Automobile-related Products Business, the impact ofsemiconductor and other parts shortages lingered, causing some customers to limit their production activities.
In view of this operating environment, the Group’s forecast of consolidated business results for the next
period (fiscal year ending March 31, 2023) as of the time of writing is as follows.
Despite concerns about the impact of a city-wide lockdown in Shanghai and customers’ revisions of
production plans, the Group will press ahead with sales-expansion activities in the next fiscal year andexpects once again to secure increases in sales. Similarly, in response to the impact of increases in rawmaterial costs and logistical expenses, the Group will continue to implement measures to improve earnings,
including measures to enhance productivity. Accordingly, the Group expects to be able to support its current
footing of increasing earnings.
Consolidated earnings forecasts for the fiscal year ending March 31, 2023
(from April 1, 2022 to March 31, 2023)
Net sales

OperatingincomeNet income
Ordinary income attributable toowners of parent
3,100
1,400

(Millions of yen)
Basic earnings
per share
(Yen)
41.71

Current Forecast
95,0003,500
Results for the current fiscal
80,789
3,318
3,137
1,318
39.31
year
(Note) The forward-looking statements, including earnings forecasts, contained in these materials are based on information
currently available to the Company and certain assumptions deemed reasonable. Actual results may differ significantly
from the forecasts due to various factors.

(2) Overview of financial position for the fiscal year
a. Assets, liabilities and net assets(Assets)
Total assets at the end of the fiscal year under review amounted to 96,917 million yen, an increase of
3,025 million yen from the previous fiscal year-end.
Current assets amounted to 51,010 million yen, an increase of 4,536 million yen from the previous fiscal
year-end. This was mainly due to an increase in inventories of 2,294 million yen and an increase in cash
and deposits of 806 million yen.
Non-current assets amounted to 45,906 million yen, a decrease of 1,510 million yen from the previous
fiscal year-end. This was mainly due to a decrease of 862 million yen in investment securities.
(Liabilities)
Total liabilities at the end of the fiscal year under review amounted to 64,998 million yen, a decrease of
496 million yen from the previous fiscal year-end.
Current liabilities amounted to 33,553 million yen, an increase of 2,335 million yen from the previous
fiscal year-end. This was mainly due to an increase of 1,928 million yen in current portion of long-termborrowings.
Non-current liabilities amounted to 31,444 million yen, a decrease of 2,832 million yen from the previous
fiscal year-end. This was mainly due to a decrease of 2,666 million yen in long-term borrowings.
(Net assets)
Net assets amounted to 31,918 million yen, an increase of 3,522 million yen from the previous fiscal yearend. This was mainly due to an increase of 2,320 million yen in foreign currency translation adjustment
and the recording of 1,318 million yen in net income attributable to owners of parent.
With the application of the accounting standard for revenue recognition, etc., the balance of retained
earnings at the beginning of the fiscal year increased by 326 million yen, thereby increasing net assets.

-5-

b. Cash flows
Cash and cash equivalents (hereinafter, “cash”) for the fiscal year under review increased by 811 million
yen from the previous fiscal year-end, to 5,060 million yen.
The respective cash flow positions for the fiscal year under review are as follows:(Cash flows from operating activities)
Net cash provided by operating activities in the fiscal year under review was 5,078 million yen (318million yen was provided in the previous fiscal year). This was mainly due to the fact that positive factors
based on income before income taxes of 3,103 million yen and depreciation of 4,762 million yen,exceeded negative factors based on an increase in inventories of 1,402 million yen.
(Cash flows from investing activities)
Net cash used in investing activities in the fiscal year under review amounted to 2,371 million yen (2,876
million yen was used in the previous fiscal year). This was mainly due to 3,357 million yen in thepurchase of non-current assets.
(Cash flows from financing activities)
Net cash used in financing activities in the fiscal year under review totaled 2,474 million yen (2,217
million yen was provided in the previous fiscal year). This was mainly due to a net decrease of 1,763
million yen in borrowings.
(3) Basic policy for distributing incomes, and dividends for the fiscal year under review and next fiscal
year
The Company, taking into consideration the operating results of the fiscal year and future businessdevelopment, has a basic policy regarding dividends from surplus, etc. of carrying out result-based
distributions in a stable manner based on a medium- to long-term perspective.
Stable dividends and future business development, etc. were comprehensively examined, and as a result,a plan is in place to submit a proposal at the 100th Ordinary General Meeting of Shareholders, which isscheduled to be held on June 28, 2022, to a regular dividend of 5 yen per share of common shares of theCompany.
Regarding projected dividends for the next fiscal year (ending March 31, 2023), the Company expects,
based on earnings forecasts and current forecasts of the financial position, to pay a regular interim
dividend of 5 yen per share of common shares, and a regular year-end dividend of 5 yen per share, giving
projected annual dividends of 10 yen per share.
(Note)

The forecasts for the next fiscal year contained in these materials are forward-looking statements including risks
and uncertainties. Therefore, the actual results may differ from the forecasts stated herein due to changes ofvarious factors.

-6-

2.

Status of the corporate group
The Group (the Company and its affiliates) consists of the Company (MIKUNI CORPORATION), 22
subsidiaries, and an associate. The Group is engaged in manufacturing and sales of fuel injection-related
products, carburetors, heaters, pumps, gas control devices, etc., the import and sales of aircraftcomponents, sales of turf-maintenance equipment, etc., and real estate leasing and other services.
Business organization chart
Reportable segments are the Automobile-related Products Business, the Household Appliances Device
Products Business, the Aircraft Component Import and Sales Business, and the Turf-maintenance
Equipment, etc. Sales Business. The business organization chart of the Group as of March 31, 2022(showing the Company and its main affiliates) is shown below.

Overseas

Domestic
Manufacturing and sales company

Manufacturing and sales companies

Manufacturing and sales companies(Entity accounted for using equity
method)Mikuni R. K. Corporation

Other
Businesses(Consolidated subsidiary)
Mikuni Life & Auto Co.,Ltd.
Sunrise Medical Japan
Co.,Ltd.

(Consolidated subsidiary)Corbin Properties Incorporated

Finished goods/
merchandise

3.

External customers(Consolidated subsidiaries)
Mikuni American Corporation
Mikuni Europe GmbH
Mikuni Taiwan Corporation
Mikuni Management (Shanghai) Co.,
Ltd.

Services company
Other Businesses

Manufacturing and sales company

Automobile-related Products BusinessAircraft Component
Import and Sales Business(Consolidated subsidiary)
Asahi Air Supply Inc.

Sales Business

Sales company

Mikuni (Thailand) Co., Ltd.
Mikuni (Shanghai) Co., Ltd.
Tianjin Mikuni Co., Ltd.
Mikuni (Chengdu) Machinery &Electronics Co., Ltd.
Mikuni (Zhejiang) Co., Ltd.
Mikuni Mexicana S.A.de C.V.
PT. Mikuni Indonesia
Mikuni India Private Limited

Sales companies

MIKUNICORPORATION(the Company)

Household Appliances Device
Products Business, Aircraft Component Import andTurf-maintenance Equipment,
etc. Sales Business,

External customers(Consolidated subsidiary)
Mikuni Green Service
CO.,LTD.

Automobile-related Products BusinessHousehold Appliances Device
Products Business

Sales company

Automobile-related Products Business, Household Appliances Device Products Business andAircraft Component Import and Sales Business

Automobile-related
Products Business(Consolidated subsidiary)
Mikuni Partec Corporation(Consolidated subsidiaries)

Components

Services

Basic concept regarding selection of accounting standards
The Group has prepared the consolidated financial statements in accordance with Japanese GAAP, andthere is no immediate plan to change its accounting standards. Concerning the policy for the applicationof IFRS, the Group will respond to this issue appropriately while giving consideration to various
circumstances in Japan and overseas.

-7-

4.

Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
Accounts receivable - trade
Contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-8-

As of March 31, 2022

4,253
18,350–––1,929
12,558
4,518
2,001
2,943
(81)
46,4745,060–
221
18,572
26
1,766
11,666
6,571
3,134
4,067
(76)
51,01032,038(23,522)
8,515
50,150(37,341)
12,80819,828(17,662)
2,165
11,797
2,343
37,63033,042(24,674)
8,367
53,094(40,231)
12,862
19,921(18,038)
1,883
11,8202,432
37,365

–
892
892

1
809
810

6,709
20
744
1,575
(155)
8,894
47,417
93,891

5,846
34
803
1,202
(156)
7,729
45,906
96,917

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Contract liabilities
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for management board incentive plan trust
Provision for share awards
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-9-

As of March 31, 2022

10,917
42
–
7,261
4,625
384
1,868
387
2,422
1,230
275
1,801
31,21811,000
887
399
6,794
6,553
336
2,095
349
2,452
1,394
218
1,071
33,553

24,681
491
2,642
2,249
50
11
3,268
882
34,27665,49522,015
454
2,673
2,249
66
23
3,106
856
31,44464,9982,215
1,923
15,566(197)
19,5072,215
1,908
16,886(181)
20,827

3,108
25
5,282
(223)
(140)
8,053
835
28,396
93,891

2,709
13
5,282
2,096
133
10,236854
31,91896,917

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rental income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodRental expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on forgiveness of debts
Gain on sale of non-current assets
Gain on sale of investment securities
Reversal of provision for product warranties
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on sale of shares of subsidiaries and associates
Litigation settlement-related expenses
Other
Total extraordinary losses
Income (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to owners of parent- 10 -

Fiscal year ended
March 31, 2022

86,962
76,107
10,854
10,285569

80,78966,426
14,362
11,044
3,318

39
160
169
113
357
177
1,019

30
165
122
120
46
114
601

594

599

264

74

50
82
991
597

59
47
782
3,137

–
0
351
339
1
692

102
55
166
–
–
324

74
133
127
–
116
50
503
786
816
42
859
(72)
52
(125)

69
184
–
53
17
33
358
3,103
1,589
147
1,737
1,365
47
1,318

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2021
Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 11 -

Fiscal year ended
March 31, 2022
(72)

1,365

1,911
27
(359)
446

(399)
(11)
2,218
273

0

17

2,026
1,954

2,099
3,465

1,922

3,369

32

96

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity
Total shareholders’equityShare capital

Capital surplus

Retained earnings

Treasury shares

2,215

1,923

15,862(166)

Balance at beginning of period

19,835

Cumulative effects of changes inaccounting policies–

Restated balance

2,215

1,923

15,862(166)

19,835

Changes during period
Dividends of surplus

(169)

(169)

Profit (loss) attributable to ownersof parent

(125)

(125)

Purchase of treasury shares
Disposal of treasury shares(4)

Transfer of loss on disposal oftreasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests

4

(77)

(77)

46

41

(4)

–
–

Change in scope of consolidation

2

2

Net changes in items other thanshareholders’ equity–

Total changes during period
Balance at end of period

–

–

(296)

(31)

(327)

2,215

1,923

15,566(197)

19,507

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of period

1,197

Deferred
gains orlosses onhedges(2)

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehens
ive income

Noncontrollinginterests

Total net
assets

5,282

114

(586)

6,005

885

26,726

Cumulative effects of changes inaccounting policies
Restated balance

–
1,197

(2)

5,282

114

(586)

6,005

885

26,726

Changes during period
Dividends of surplus(169)

Profit (loss) attributable to ownersof parent(125)

Purchase of treasury shares(77)

Disposal of treasury shares

41

Transfer of loss on disposal oftreasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests––

Change in scope of consolidation
Net changes in items other thanshareholders’ equity

2
1,911

27

–

(338)

446

2,047

(49)

1,997

Total changes during period

1,911

27

–

(338)

446

2,047

(49)

1,669

Balance at end of period

3,108

25

5,282

(223)

(140)

8,053

835

28,396- 12 -

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

Retained earnings

Treasury shares

2,215

1,923

15,566(197)

Balance at beginning of period
Cumulative effects of changes inaccounting policies

Total shareholders’equity19,507326

Restated balance

2,215

1,923

326

15,893(197)

19,834

Changes during period
Dividends of surplus

(340)

(340)

Profit (loss) attributable to ownersof parent

1,318

1,318

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

15

15

Transfer of loss on disposal oftreasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests–(14)

Change in scope of consolidation

(14)

(1)

14

13

Net changes in items other thanshareholders’ equity–

Total changes during period
Balance at end of period

–

(15)

993

15

993

2,215

1,908

16,886(181)

20,827

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges3,10825

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

5,282

(223)

(140)

NonTotalaccumulated controllinginterests
othercomprehens
ive income
8,053

835

Cumulative effects of changes inaccounting policies
Restated balance

Total net
assets28,396
326

3,108

25

5,282

(223)

(140)

8,053

835

28,723

Changes during period
Dividends of surplus(340)

Profit (loss) attributable to ownersof parent

1,318

Purchase of treasury shares(0)

Disposal of treasury shares

15

Transfer of loss on disposal oftreasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests–(14)

Change in scope of consolidation
Net changes in items other thanshareholders’ equity

13
(399)

(11)

–

2,320

273

2,183

18

2,202

Total changes during period

(399)

(11)

–

2,320

273

2,183

18

3,195

Balance at end of period

2,709

13

5,282

2,096

133

10,236854

31,918- 13 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Gain on forgiveness of debt
Impairment losses
Subsidy income
Interest and dividend income
Interest expenses
Loss (gain) on sale and retirement of non-current assets
Share of loss (income) of entities accounted for using
equity method
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in trade receivables
Decrease (increase) in trade receivables and contract
assetsDecrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from sale of shares of subsidiaries andassociates
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities- 14 -

Fiscal year ended
March 31, 2022

786
4,651
–
–
133
(357)
(200)
594
73

3,103
4,762
1
(102)
184
(46)
(196)
599
14

264

74

193
(664)
(114)
20
(514)

209
(67)
142
(10)
–

–

1,361

(3,113)(99)(1,076)
(281)
1,071
1,367
240
(587)
342
(1,044)318(1,402)
260
139
(319)
(2,007)
6,703
220
(596)
55
(1,304)
5,078(3,789)
624
(174)
(0)
502
(42)

(3,178)
622
(178)
(25)
194
(44)

–

194

60
(57)
(2,876)29
14(2,371)

(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Increase in cash and cash equivalents resulting frommergerCash and cash equivalents at end of period- 15 -

Fiscal year ended
March 31, 2022

1,602
6,381
(5,021)
(77)
46
(171)
(81)
(460)
2,217

(810)
3,982
(4,935)
(0)
–
(340)
(100)
(270)
(2,474)

(138)

394

(478)
4,672

626
4,249

54

36

–

147

4,249

5,060

(5) Notes to consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, Etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and it
has recognized revenue at the time the control of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchange of said goods or services. Previously, forcertain products, revenue was recognized over the period during which the selling price (consideration)
was recovered. With this application of the accounting standard, such revenue is now recognized at thetime control of the product is transferred to the customer.
In some sales of products to customers, the Company’s role corresponds to that of an agent. Previously,
in such transactions, the total amount of consideration received from the customer was recognized asrevenue. Under the new accounting policy, the amount recognized as revenue is the net amount, which isthe said total amount of consideration minus amounts paid to third parties.
In subcontract processing with charged materials corresponding to buyback contracts, the suppliedmaterials remaining with the subcontractor in a financial transaction continue to be recognized as
inventories. Moreover, for the amount equivalent to inventories of the materials remaining with thesubcontractor at fiscal year-end, a liability related to subcontract processing with charged materials is
recognized. Regarding subcontract processing with receipt of materials for value, net sales and cost of
sales were previously recorded at the time the finished goods were sold back to the supplier. Under the
new accounting policy, only the net amount corresponding to the processing fee is recognized asrevenue.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the beginning of the current fiscal year wasadded to or deducted from the opening balance of retained earnings of the current fiscal year, and thus
the new accounting policy was applied from such opening balance; provided, however, that the new
accounting policy was not retrospectively applied to contracts for which nearly all the revenue amounts
had been recognized according to the previous treatment in periods prior to the beginning of the current
fiscal year, by applying the method provided for in paragraph 86 of the Accounting Standard for
Revenue Recognition. Furthermore, by applying the method set forth in item (1) of the supplementaryprovisions of paragraph 86 of the Accounting Standard for Revenue Recognition, modifications tocontracts carried out prior to the beginning of the current fiscal year were accounted for based on thecontractual terms after all contract modifications were reflected. Consequently, this cumulative effect
was added to or deducted from the opening balance of retained earnings of the current fiscal year.
As a result, in comparison with the previous accounting procedures, net sales in the current fiscal year is
21,611 million yen lower and cost of sales is 21,485 million yen lower. Operating income is 125 million
yen lower and both ordinary income and net income before income taxes are both 108 million yen lower.
Also, the opening balance of retained earnings of the current fiscal year is increased by 326 million yen.
With the application of the Accounting Standard for Revenue Recognition, etc., notes and accounts
receivable–trade, which was recorded under “current assets” in the consolidated balance sheet in theprevious fiscal year, is included in “notes receivable,” “accounts receivable” and “contract assets” in thecurrent fiscal year. Similarly, “other,” which was previously recorded under “current liabilities,” isincluded in “contract liabilities” and “other” in the current fiscal year. Also, “decrease (increase) in tradereceivables,” which was recorded under “cash flow from operating activities” in the consolidated
statement of cash flows in the previous fiscal year, is included in “decrease (increase) in tradereceivables and contract assets” in the current fiscal year. In accordance with the transitional treatment as
stipulated in paragraph 89-3 of the accounting standard for revenue recognition, etc., reclassification
based on the new presentation method is not applied to the previous fiscal year.

- 16 -

(Application of Accounting Standard for Fair Value Measurement, Etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the current fiscal year, and it hasapplied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement,
etc. prospectively in accordance with the transitional measures provided for in paragraph 19 of the
Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This change does not affect the financial
statements for the current fiscal year.
(Change in presentation)
1. Consolidated balance sheet“Electronically recorded obligations - operating,” which was included in “Notes and accounts payable- trade” under “current liabilities” in the previous fiscal year is presented separately in the current
fiscal year due to its increased materiality.

- 17 -

(Segment information, etc.)[Segment information]
1. Outline of reportable segments
The reportable segments of the Group are components of the Group that have separate financial
information available and are periodically examined to enable the Board of Directors to makedecisions on the allocation of management resources and evaluate the results of businessperformance.
The Company establishes comprehensive domestic and overseas strategies for each product andservice, and undertakes business activities in cooperation with group companies.
The Group accordingly consists of segments by product and service, with four reportable segments:
Automobile Products-related Business, Household Appliances Device Products Business, Aircraft
Component Import and Sales Business, and Turf-maintenance Equipment, etc. Sales Business.
The Automobile Products-related Business mainly manufactures and sells fuel supply systems forautomobiles, motorcycles, and general purpose engines and engine-related functional components.
The Household Appliances Device Products Business mainly manufactures and sells control systems
for gas appliances and water appliances. The Aircraft Component Import and Sales Business mainly
imports and sells aircraft components. The Turf-maintenance Equipment, etc. Sales Business mainly
sells turf-maintenance equipment, etc.

2. Calculation method for the amounts of net sales, income/loss, assets and other items by reportablesegment
The accounting method for reportable segments is, in general, the same as that used to prepare
consolidated financial statements.
Segment profit (loss) of reportable segments is provided on an operating income (loss) basis.

- 18 -

3. Information regarding the amounts of net sales, income/loss, assets and other items by reportablesegment
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable segment
HouseholdAircraft
TurfAutomobile
Appliances Component maintenance
ProductsDevice
Import and Equipment,
relatedProducts
Sales
etc. Sales

Total

Other
Businesses(Note)

Total

Amounts
reported in
Adjustthements consolidated
financialstatements

Net sales
To external customers
60,345
5,818
16,441
2,568
85,173
1,788
86,962–
86,962
Inter-segment sales or
–
–
–
–
–
–
–
–
–
transfers
Total
60,345
5,818
16,441
2,568
85,173
1,788
86,962–
86,962
Segment profit (loss)
772
(221)
190
(169)
571
(2)
569
–
569
Segment assets
74,653
5,783
7,079
3,849
91,365
2,525
93,891–
93,891Other items
Depreciation
4,277
261
52
9
4,600
50
4,651
–
4,651
Amortization of
–
–
–
–
–
–
–
–
–
goodwill
Investments in entities
accounted for using
398
303
–
–
702
–
702
–
702
equity method
Increase in property,
plant and equipment
2,982
205
45
12
3,245
38
3,284
–
3,284
and intangible assets(Note) The “Other Businesses” category refers to a business segment not included in reportable segments including suchbusinesses as manufacturing and sales of vehicle heaters and welfare and care devices, etc.

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segment
HouseholdAircraft
TurfAutomobile
Appliances Component maintenance
ProductsDevice
Import and Equipment,
relatedProducts
Sales
etc. Sales

Total

Other
Businesses(Note)

Total

Amounts
reported in
Adjustthements consolidated
financialstatements

Net sales
To external customers
66,245
6,753
1,615
3,877
78,492
2,297
80,789–80,789Inter-segment sales or
–
–
–
–
–
–
–
–
–
transfers
Total
66,245
6,753
1,615
3,877
78,492
2,297
80,789–80,789Segment profit (loss)
3,567
(491)
286
(33)
3,328
(10)
3,318
–
3,318
Segment assets
74,694
6,415
8,092
5,311
94,513
2,403
96,917–
96,917
Other items
Depreciation
4,330
286
65
31
4,714
48
4,762
–
4,762
Amortization of
–
–
–
–
–
1
1
–
1
goodwill
Investments in entities
accounted for using
–
315
–
–
315
–
315
–
315
equity method
Increase in property,
plant and equipment
2,718
310
39
34
3,103
59
3,163
–
3,163
and intangible assets(Notes) 1. The “Other Businesses” category refers to a business segment not included in reportable segments including suchbusinesses as manufacturing and sales of vehicle heaters and welfare and care devices, etc.
2. Matters related to changes in reportable segments
As stated in Changes in accounting policies, the Accounting Standard for Revenue Recognition, etc. is applied fromthe beginning of the current fiscal year. Because the accounting treatment of revenue recognition is changed, themethod of calculation of segment profit or loss is changed as well.
As a result of the change, net sales were 3,517 million yen lower than they would have been under the previous
accounting treatment and segment profit was 120 million yen lower for the Automobile-related Products Business;segment loss for the Household Appliances Device Products Business was 5 million yen higher; and net sales for the
Aircraft Component Import and Sales Business were 18,093 million yen lower in the current fiscal year.

- 19 -

(Per share information)
Fiscal year ended March 31, 2021
(from April 1, 2020
to March 31, 2021)

Fiscal year ended March 31, 2022
(from April 1, 2021
to March 31, 2022)

Net assets per share822.12 yen

925.67 yen

Basic income (loss) per share(3.73) yen

39.31 yen

Item

(Notes)

1. Diluted earnings per share is not presented since no potential shares exist.
2. The shares of the Company that remain in trust and are recorded as treasury shares in shareholders’ equity areincluded in treasury shares that are excluded from the recording of the average number of shares during theperiod in calculating the amount of basic income (loss) per share, and are included in the number of treasury
shares that are excluded from the total number of issued shares at the end of the period in calculating net
assets per share.
Number of treasury shares at end of period deducted in calculating net assets per share
Fiscal year ended March 31, 2021
489,880 sharesFiscal year ended March 31, 2022
454,380 shares
Average number of treasury shares during period deducted in calculating the basic income (loss) per share
Fiscal year ended March 31, 2021
334,987 sharesFiscal year ended March 31, 2022
464,749 shares

3. The basis of the calculation of basic oncome (loss) per share is as follows:
Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022
Item(from April 1, 2020
(from April 1, 2021
to March 31, 2021)
to March 31, 2022)
Net profit (loss) attributable to owners of
(125)
1,318
parent (million yen)Amounts not attributable to common––shareholders (million yen)
Net profit (loss) attributable to owners ofparent available to common shares (million
(125)
1,318
yen)
Average number of shares during the period
33,586,684
33,549,007(shares)(Significant subsequent events)
Not applicable.

- 20 -